Table Of Content

Praise for Lean Analytics “Your competition will use this book to outgrow you.” Mike Volpe—CMO, Hubspot “Everyone has data, the key is figuring out what pieces will improve your learning and decision making. Everyone knows they need metrics, but finding ones that are specific, measurable, actionable, relevant, and timely is a huge challenge. In Lean Analytics, Ben and Alistair have done a masterful job showing us how to use data and metrics to peer through the haze of uncertainty that surrounds creating new businesses and products. This book is a huge gift to our industry.” Zach Nies—Chief Technologist, Rally Software “Lean Analytics is the missing piece of Lean Startup, with practical and detailed research, advice and guidance that can help you succeed faster in a startup or large organization.” Dan Martell—CEO and Founder, Clarity “Entrepreneurs need their own reality distortion field to tilt at improbable windmills. But that delusion can be their undoing if they start lying to themselves. This book is the antidote. Alistair and Ben have written a much-needed dose of reality, and entrepreneurs who ignore this data- driven approach do so at their peril.” Brad Feld—Managing Director, Foundry Group; Co-founder, TechStars; and Creator, the Startup Revolution series of books “Lean Analytics will take you from Minimum Viable Product to Maximally Valuable Product. It’s as useful for product managers at today’s multi-billion dollar companies as it is for entrepreneurs who aspire to build those of tomorrow.” John Stormer—Senior Director of New Products, Salesforce “The bad news is, there will always be people out there smarter than you. The good news is, Alistair and Ben are those guys. Using Lean Analytics will give you the edge you need.” Julien Smith—New York Times bestselling author of Trust Agents and The Flinch “At Twitter, analytics has been key to understanding our users and growing our business. Smart startups need to embrace a data-driven approach if they’re going to compete on a level playing field, and this book shows you how.” Kevin Weil—Director of Product, Revenue, Twitter “A must-read on how to integrate analytics deep into an emerging product, and take the guesswork out of business success.” Peter Yared—CTO/CIO, CBS Interactive “Lean Analytics is a detailed explanation of the data-driven approach to running a business. Thoughtfully composed by two experienced entrepreneurs, this is a book I will make part of my training materials at Sincerely, Inc., and all future companies.” Matt Brezina—Founder, Sincerely, Inc., and Xobni “Pearson’s Law states, ‘That which is measured improves.’ Croll and Yoskovitz extend our understanding of Lean management by bringing rigorous measurement techniques to a new frontier: the earliest stages of new product development and launch. If entrepreneurs apply their frameworks, they should see reduced waste and big improvements in startup success rates. Thomas Eisenmann—Howard H. Stevenson Professor of Business Administration, Harvard Business School “This isn’t just a book about web analytics or business analytics—it’s a book about what organizations should and shouldn’t measure, and how to transform that data into actionable practices that will help them succeed. Alistair and Benjamin have compiled a robust set of case studies that illustrate the power of getting analytics right, and, if taken to heart, their tips and takeaways will make entrepreneurs, marketers, product and engineering folks better at what they do.” Rand Fishkin—CEO and Co-founder, Moz “I bet you’d never imagined that success depends on your ability to fail. Fail faster, fail forward. And the secret to that success is your ability to learn and iterate quickly using data. Qualitative and quantitative. Let Alistair and Ben show you how to get to startup nirvana smarter!” Avinash Kaushik—Author, Web Analytics 2.0 “Lean Analytics shows you how to move insanely fast by getting your metrics to tell you when you’re failing and how to do something about it. Tons of honest, meaningful advice—a must-read for Founders who want to win.” Sean Kane—Co-founder, F6S and Springboard Accelerator “There are only two skills that are guaranteed to reduce the chances of startup failure. One is clairvoyance; the other is in this book. Every entrepreneur should read it.” Dharmesh Shah—Founder and CTO, HubSpot “First you need to build something people love. Then you need to attract and engage people to find and use it. Having a deep understanding of your data and metrics is fundamental in achieving this at scale. Lean Analytics is a detailed, hands-on approach to learning what it means to track the right metrics and use them to build the right products.” Josh Elman—VC, Greylock Partners “Lean Analytics is the natural evolution of the Lean Startup movement, which began as a humble blog and has blossomed into a global movement. This book delivers concrete, hard-won insights spanning all business models and company stages. It’s a must-read for any business leader who’s looking to succeed in an increasingly data-driven world.” Mark MacLeod—Chief Corporate Development Officer, FreshBooks “A vital part of the founder’s toolkit. If you’re starting a company, you need to read this.” Mark Peter Davis—Venture Capitalist and Incubator “Lean Analytics is packed with practical, actionable advice and engaging case studies. You need to read this book to understand how to use data to build a better business.” Paul Joyce—Co-founder and CEO, Geckoboard “Get this book now. Even if you’re only thinking about starting something, Lean Analytics will help. It’s a dose of tough love that will greatly increase your chances of survival and success. Start off on the right foot and read this book; you won’t regret it.” Dan Debow—Co-CEO and Founder, Rypple; SVP, Work.com “Stop thinking and just buy this book. It’s the secret sauce. If you’re an entrepreneur, it’s required reading.” Greg Isenberg—CEO, fiveby.tv; Venture Partner, Good People Ventures “This is a treasure for the Lean Startup movement—a dense collection of actionable advice, backed by real case studies. Lean concepts are easy to understand but often difficult to put into practice, but Lean Analytics makes the path clear and gives you the tools to measure your progress.” Jason Cohen—CEO, WP Engine “With this book, Alistair and Ben bring a framework and lessons together for the thousands of new startups looking to do things fast and right. Time is everything as markets get continuously more efficient, and even over-capitalized quickly. Lean Analytics is great learning material for this generation of web and mobile startups.” Howard Lindzon—Co-founder and CEO, Stocktwits; Managing Partner, Social Leverage; Creator, Wallstrip “Alistair and Ben are trusted leaders in their field already. With this book, they let you see how they got there.” Chris Brogan—CEO and President, Human Business Works “With Lean Analytics, Ben and Alistair have, for the first time that I’ve seen, put real case studies and numbers together in an easy-to-read form, with actual successful startups as examples. These insights are hugely powerful for both early-stage founders and those at a later stage. It’s one of the few books that I know I’ll be going back to time and time again.” Joel Gascoigne—Founder and CEO, Buffer “Daniel Patrick Moynihan famously said, ‘Everyone is entitled to his own opinion, but not to his own facts.’ This is never more true than in business. One of the best things about working with Alistair Croll is how he cuts through opinion with facts, turning marketing into learning, and product development into a conversation with customers.” Tim O’Reilly—Founder and CEO, O’Reilly Media, Inc. “Not more numbers, but actionable metrics. In Lean Analytics, Alistair and Ben teach you how to cut through the fog of data and focus on the right key metrics that make the difference between succeeding and failing.” Ash Maurya—Founder and CEO, Spark59 and WiredReach; author, Running Lean “We live in a day and age where data and analytics can (finally!) be used by anyone and everyone. If you’re not leveraging the power of data and analytics to figure out what works and what doesn’t, then you’re working in the dark. Listen to Alistair and Ben: they’re not only the light switch to get you out of the dark, but they know how the entire power plant runs. I can’t think of two people I would turn to quicker if I had a startup and wanted to leverage the power of data to make my business a success.” Mitch Joel—President, Twist Image; author, Ctrl Alt Delete “Many entrepreneurs are overwhelmed by data they don’t know what to do with and by metrics that aren’t helpful in running their business. Lean Analytics tells important stories from many businesses— with real data—to provide a framework to define the right metrics and use them to execute better. Highly recommended!” Mike Greenfield—Founder, Circle of Moms and Team Rankings “Lean Analytics helps you cut through the clutter and show you how to measure what really matters.” Rajesh Setty—Serial Entrepreneur and Business Alchemist, rajeshsetty.com “I’ve heard way too many early entrepreneurs (myself included!) bristle at letting data drive product design. ‘It’s my product—how could users know better than me?’ This book, with its wealth of relatable stories and examples, lays out in clear terms exactly how and why analytics can help. It’s a shortcut to a lesson that can otherwise take painfully long to learn.” Dan Melinger—Co-founder and CEO, Socialight “Ben and Alistair are startup experts in their own right, but they really went out of their way to solicit advice and input from as many other real-world practitioners as possible when writing this book. Their effort really pays off—Lean Analytics is chock-full of high-quality techniques for building your startup, put in terms that even a first-time entrepreneur can understand.” Bill D’Alessandro—Partner, Skyway Ventures “Are you in search of what to measure, how to measure it, and how to act on that data in order to grow your startup? Lean Analytics gives you exactly that.” Rob Walling—Author, Start Small, Stay Small: A Developer’s Guide to Launching a Startup “You need this book if you’re an entrepreneur looking to get an edge with your data.” Massimo Farina—Co-founder, Static Pixels “Every entrepreneur’s goal is to follow the most efficient path to success, but you rarely know that path going in. Lean Analytics demonstrates the process of leveraging very specific metrics to find your business’s unique path, in a way that new entrepreneurs and veterans alike can understand.” Ryan Vaughn—Founder, Varsity News Network Lean Analytics Use Data to Build a Better Startup Faster Alistair Croll Benjamin Yoskovitz Beijing · Cambridge · Farnham · Köln · Sebastopol · Tokyo Lean Analytics by Alistair Croll and Benjamin Yoskovitz Copyright © 2013 Alistair Croll, Benjamin Yoskovitz. All rights reserved. Printed in the United States of America. Published by O’Reilly Media, Inc., 1005 Gravenstein Highway North, Sebastopol, CA 95472. O’Reilly books may be purchased for educational, business, or sales promotional use. Online editions are also available for most titles (safari.oreilly.com). For more informa- tion, contact our corporate/institutional sales department: (800) 998-9938 or corpo-